Prices are representative and are for reference only.RMB1=US$0.1533 (Jan 2)

Market analysis

Prices of CBOT March soy futures surged during early parts of the week, but pared gains before the week ended. Compared with the previous week, closing prices were a mere 0.15% higher.

In China, weekly transaction volume of soymeal increased 8% to 740,000 tonnes as feed millers continued to stock inventories. With crushing volumes stable at 1.76 million tonnes, prices soymeal remained soft over the week.

Meanwhile, port inventories of soy in China were around 8.3 million tonnes, almost 20% higher compared with the same period in 2016.

Market forecast

Feed consumption is poised to be high between late January and mid-February, lending support to the soymeal market in conjunction with strong fishmeal prices. However, with supplies ample and the global soy market staying weak, prices are less likely to rise prominently unless China's stricter import control slashes supply tremendously.

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